Finance Monthly August 2019 Edition

8 www.finance-monthly.com NEWS - MONTHLY ROUND-UP THE MONTHLY ROUND-UP DEUTSCHE BANK BEGINS JOB CUTS After announcing an in- tended cut of around 18,000 jobs in a huge reorganisation at the company, Deutsche Bank has begun cutting jobs in London, New York and Tokyo. The intention of these cuts is to make the bank “leaner and stronger”, ac- cording to a spokesper- son at the company. “We have decided to focus our resources on businesses where clients need us most. “We are setting up a dedicated corporate bank specialising in the financ- ing and treasury products the world’s companies need to support trade and investment around the globe. “Deutsche Bank will re- main an international bank. That’s what our cli- ents need.” In a statement, Deutsche Bank said: “We will retain a significant presence here and remain a close partner to our UK clients and to international institu- tions that want to access the London market.” Its Chief Executive, Chris- tian Sewing, described the job losses as “pain- ful but unavoidable to ensure Deutsche Bank’s long-term success”. As a result of the announce- ment, shares in the com- pany dropped by more than 5%. He added: “If we can’t compete with the best, we won’t be in the game.” Boris Johnson has official- ly become UK’s new Prime Minister after beating Jer- emy Hunt in the race to be- come the new leader of the Conservative Party. Speaking on the steps of Downing Street, he com- mitted to taking Britain out of the EU by striking a new and better deal by the 31 October deadline. Barring that, Johnson promised to take Britain out of the union without a deal if he had to. In light of the news, James Stewart, Head of Brexit at KPMG UK commented: “We may have a new Prime Minister, but busi- nesses are still none the wiser on Brexit with less than a 100 days to go until 31 October. “We certainly haven’t seen the same level of intensity from clients on Brexit preparations as we did ahead of the original 31 March deadline. Many businesses are now better informed about the risks of a no-deal, but more worrying are those that haven’t done enough ei- ther through Brexit fatigue, a ‘mañana’ mentality or by simply being unaware. More worrying still is that those who haven’t done enough will impact those in the supply chain who rely on them. “Of course, it is hard to plan for the unknown un- knowns. Nobody really knows how long our ports will experience disruption; how many flights will run on time or whether goods BORIS JOHNSON BECOMES THE UK’S NEW PRIME MINISTER will be stuck in traffic jams; or how the pound sterling will be impacted by all of these unprec- edented events. However, one thing that everyone now seems to agree, whichever side of the Brexit divide that they sit, is that no deal will result in a significant short-term economic downturn. “But investors will pun- ish businesses who blame Brexit for under- performance when their competitors are resilient or even emerging strong- er. Whilst some pieces of the jigsaw are out of their hands, there’s still a lot that can be done to use the time wisely. “This means thinking about the basics, such as curren- cy hedges, working capital, staffing levels and inven- tory. Talking to your bank, your suppliers or even un- derstanding how your cus- tomers will behave. “Having the right paper- work in the event of a no-deal is also important. This includes registering for a trading code (EORI number) to prevent goods not being cleared for im- port and export. Or taking advantage of importing goods from the EU without paying any import duties for a month and using sim- plified procedures (TSP, deferment account). Both processes are relatively straightforward and quick to register but businesses just need to get on and do it. “Brexit preparation will be a competitive differentiator. Those who have failed to prepare will find it harder to attract investor support, recruit staff, find the right warehousing or meet cus- tomer expectations over the long term.”